Debt Consolidation
Combining multiple debts into one lower-interest payment — without reducing the principal
Reviewed by Tony Hernandez, I.A.P.D.A. Sales Certified Debt Specialist (certificate no. 2025021213576451, expires 02/12/2027)This credential is a professional certification issued by International Association of Professional Debt Arbitrators, not a government license.
Tony Hernandez reviews this page for factual accuracy as an independent editorial reviewer. Tony Hernandez is President of New Era Debt Solutions, a debt-settlement company, and receives no compensation and no consumer inquiries or referrals from Dreamy Leads Research; inquiries submitted on this site are not sent to Tony Hernandez or New Era Debt Solutions. Pages that name New Era Debt Solutions, and company-versus-company comparison pages, are not reviewed by Tony Hernandez. His certification is shown as published by the International Association of Professional Debt Arbitrators and can be verified there.
Debt consolidation combines multiple high-interest debts into a single loan or payment structure, typically with a lower blended interest rate. Common approaches: a personal consolidation loan at a lower rate than your cards, a balance transfer credit card with a 0% intro APR period, a home equity loan or HELOC, or a Debt Management Plan (DMP) through an NFCC-certified nonprofit credit counselor. Unlike debt settlement, consolidation does not reduce the principal owed — it restructures payment terms and interest costs. A DMP typically lowers monthly payments, interest charges and fees (CFPB); the FTC notes a plan can take 48 months or more to complete.
